Umandap, John Erick S.

MANCO 101 – I-AI

1. Economic Behaviour - it includes, for example, work, buying, saving, giving, and

gambling. Several of these have been subjects of intense research within
psychology. Behavioral economics combines elements of economics and
psychology to understand how and why people behave the way they do in the real
world. It differs from neoclassical economics, which assumes that most people have
well-defined preferences and make well-informed, self-interested decisions based on
those preferences.
Economic Behavior - an overview | ScienceDirect
Thttps://www.investopedia.com/terms/m/microeconomics.asp#:~:text=Microeconomi
cs%20is%20the%20study%20of,%2C%20sellers%2C%20and%20business
%20owners.opics
https://news.uchicago.edu/explainer/what-is-behavioral-economics
2. Economic Freedom – it is the fundamental right of every human to control his or
her own labor and property. In an economically free society, individuals are free to
work, produce, consume, and invest in any way they please. In economically free
societies, governments allow labor, capital, and goods to move freely, and refrain
from coercion or constraint of liberty beyond the extent necessary to protect and
maintain liberty itself.
https://www.heritage.org/index/about
3. Microeconomics - it is the study of what is likely to happen (tendencies) when
individuals make choices in response to changes in incentives, prices, resources,
and/or methods of production. Individual actors are often grouped into
microeconomic subgroups, such as buyers, sellers, and business owners.
https://www.investopedia.com/terms/m/
microeconomics.asp#:~:text=Microeconomics%20is%20the%20study%20of,%2C
%20sellers%2C%20and%20business%20owners.
4. Macroeconomics - it focuses on the performance of economies – changes in
economic output, inflation, interest and foreign exchange rates, and the balance of
payments. Poverty reduction, social equity, and sustainable growth are only possible
with sound monetary and fiscal policies.
https://www.worldbank.org/en/topic/macroeconomics#:~:text=Macroeconomics
%20focuses%20on%20the%20performance,sound%20monetary%20and%20fiscal
%20policies.
5. Ceteris Paribus - it is a Latin phrase that generally means "all other things being
equal." In economics, it acts as a shorthand indication of the effect one economic
variable has on another, provided all other variables remain the same.
https://www.investopedia.com/terms/c/ceterisparibus.asp
6. Opportunity Cost - Opportunity cost is the potential forgone profit from a missed
opportunity—the result of choosing one alternative and forgoing another.
https://www.investopedia.com/terms/o/opportunitycost.asp
7. Price – it is the amount a customer is willing to pay for a product or service.
https://www.investopedia.com/ask/answers/101314/what-difference-between-cost-
and-price.asp#:~:text=from%20each%20sale.-,Price%20is%20the%20amount%20a
%20customer%20is%20willing%20to%20pay,company%20earns%20%244%20in
%20profit.
8. Demand – it  is an economic concept that relates to a consumer's desire to
purchase goods and services and willingness to pay a specific price for them. An
increase in the price of a good or service tends to decrease the quantity demanded.
https://www.investopedia.com/terms/d/demand.asp
9. Supply – it is a fundamental economic concept that describes the total amount of
a specific good or service that is available to consumers.
https://www.investopedia.com/terms/s/supply.asp
10. Equilibrium Point -  it is the specific point where demand matches supply at the
same price. For supermarkets and other retail outlets, the equilibrium market point is
where the quantity of goods supplied is equal to the number of goods demanded.
This is the point at which the demand and supply curves intersect.
https://mmpi.ie/equilibrium-points/
11. Surplus - A surplus describes the amount of an asset or resource that exceeds
the portion that's actively utilized. A surplus can refer to a host of different items,
including income, profits, capital, and goods. In the context of inventories, a surplus
describes products that remain sitting on store shelves, unpurchased. In budgetary
contexts, a surplus occurs when income earned exceeds expenses paid.
https://www.investopedia.com/terms/s/surplus.asp
12. Shortage - it  is a condition where the quantity demanded is greater than the
quantity supplied at the market price. There are three main causes of shortage—
increase in demand, decrease in supply, and government intervention. Shortage, as
it is used in economics, should not be confused with "scarcity."
https://www.investopedia.com/terms/s/shortage.asp#:~:text=A%20shortage%20is
%20a%20condition,be%20confused%20with%20%22scarcity.%22
13. Elasticity - it is an economic measure of how sensitive one economic factor is to
changes in another. For example, changes in supply or demand to the change in
price, or changes in demand to changes in income.
https://www.investopedia.com/terms/e/elasticity.asp#:~:text=Elasticity%20is%20an
%20economic%20measure,demand%20to%20changes%20in%20income.
14. Elasticity of Demand - the elasticity of demand refers to the degree to which
demand responds to a change in an economic factor. Price is the most common
economic factor used when determining elasticity. Other factors include income level
and substitute availability. Elasticity measures how demand shifts when economic
factors change.
https://www.investopedia.com/ask/answers/012915/what-difference-between-
inelasticity-and-elasticity-demand.asp#:~:text=The%20elasticity%20of%20demand
%20refers,shifts%20when%20economic%20factors%20change.
15. Elasticity of Supply - price elasticity of supply measures the responsiveness to
the supply of a good or service after a change in its market price. According to basic
economic theory, the supply of a good will increase when its price rises.
https://www.investopedia.com/ask/answers/040615/how-does-price-elasticity-affect-
supply.asp